Running a business is expensive. There’s no getting around it! Smart entrepreneurs, however, know how to cut costs, and save themselves money. When it comes to business and money, there are two main things on the ‘outgoings’ column. The first are your expenses. These are your employees’ wages or the rent on your shop or premises. It’s also the costs of running a marketing campaign or hiring a web designer. The other costs are your assets. This is your physical equipment, stock, or tools you need to run your company.
If you’re a plumber, for example, your assets are your tools and your van. It’s these assets that we’re looking at today. Most new business owners need to invest in plenty of assets just to get started. The plumber in our example can’t start a business until he buys the necessary tools. Assets are an essential part of business. Luckily, they’re also the best place to cut costs and find a bargain. We’ve picked up a few tricks and techniques over the last few years. Today, we’ll let you in on the secrets.
1. Buy Them From Liquidated Companies
It’s a well known statistic that nearly 50% of all self-started businesses fail. Most of those within the first two years. While it’s heartbreaking for the entrepreneur behind the idea, you can help them out. By buying their assets, you can help liquidate their company and give them some much needed cash. You, on the other hand, get some fantastic equipment at a rock-bottom price. There are a variety of websites and traders that specialise in selling liquidated assets. Hunt them out in your industry.
2. Keep Them Well Maintained
As we have explained, assets are typically tools and equipment. It could be machinery or engine parts for your factory. As a general rule, assets like these have a certain shelf-life. After a while, they’ll begin to deteriorate, and ultimately fail. At that point, you’ve got to fork out for new equipment or pay to have it repaired. By extending the life of your assets, you can save money. We recently spoke to our local cooling tower manufacturers, who told us that regular maintenance is crucial. It’s the only way to extend the life of the assets, and keep the overall, lifetime costs down.
3. Negotiate With Suppliers
Almost all of your business assets will come from dedicated industry suppliers. The good news is that they’re always open to negotiation. Strike up a relationship with your regular suppliers, and you’re much more likely to get a decent discount. Try to find the best possible deal with clever haggling tricks. Start by buying your assets in bulk, especially if you need a lot of stock. That’s bound to land you a cut price. You could also try offering a quick up-front payment to secure a cheaper deal. Get creative here, and don’t be shy about asking for discounts!
Follow this advice, and you’ll shave lots of money from the cost of your assets. Let us know any tricks or secrets you use to cut costs!